Global Healthcare REIT Announces Completion of First Closing of Private Offering and Acquisition of Second Skilled Nursing Facility

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ATLANTA--(BUSINESS WIRE)--

Global Healthcare REIT, Inc (the “Company” or “Global”) GBCS announced today that effective December 31, 2013, it completed the First Closing of a private offering of its common stock, and with the proceeds of the offering closed upon the acquisition of its second skilled nursing facility.

Private Offering

The Company commenced a private offering of its common stock, $0.05 par value (“Common Stock”) on December 4, 2013 (the “Offering”). The Offering consists of up to 7.5 million shares of Common Stock being offered on a 2,250,000 share, all-or-none, minimum (“Minimum Offering”), 7,500,000 share maximum, best efforts, basis (“Maximum Offering”) at a private offering price of $0.75 per share. Subscriptions for shares in the Offering were sold either for cash or in exchange for outstanding notes owed by the Company or an affiliate of the Company (the “Notes”). The Company has also granted the Placement Agent with an over-allotment option covering an additional 1,500,000 shares of Common Stock.

On December 31, 2013, the Company completed the First Closing on the Minimum Offering, having sold an aggregate of 4,190,562 shares of Common Stock for gross proceeds of $3,142,912. Of the total subscriptions, $465,000 in principal and $5,414 in accrued interest of Notes were exchanged for shares; and the balance of the subscriptions were paid in cash. After deducting placement agent fees of $185,996, non-accountable expense allowance of $62,750 and expense reimbursements, the Company realized net proceeds of $2,409,834.77 from the First Closing.

The Offering was sold to 42 investors, each of whom qualified as an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and was undertaken without registration under the Securities Act in reliance upon the exemption contained in Rule 506 of Regulation D.

The Offering will continue until the sale of the Maximum Offering or until terminated by agreement of the Company and its Placement Agent.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security. The Offering described in this announcement is being made solely by means of a Confidential Private Placement Memorandum and Supplements thereto.

Acquisition of Warrenton Nursing Home

Immediately following the consummation of the First Closing of the Minimum Offering, the Company used approximately $984,500 of the net proceeds to consummate the purchase of the 110 bed Warrenton Nursing Home (“Warrenton”) located in Warrenton, Georgia.

Warrenton was purchased by ATL/WARR, LLC, a single purpose Georgia limited liability company (“Warr LLC”), which was previously owned 95% by Christopher Brogdon and 5% by an unaffiliated investor. Concurrently, Mr. Brogdon conveyed his 95% membership interest in Warr LLC to the Company for nominal consideration.

The total purchase price for Warrenton was $3.5 million, of which $2.72 million was paid with the proceeds of a commercial loan, and the balance with the cash paid by the Company.

Warrenton is leased to a multi-unit skilled nursing home operator.

Christopher Brogdon, President of Global, stated, “We are extremely pleased with the response we have received so far in the Offering. This First Closing enabled us to close on our second skilled nursing home and we are optimistic that we can continue the offering and accelerate our acquisition strategy. I would like to thank our shareholders for their continuing support and shared optimism.”

About Global Healthcare REIT, Inc.

Global Healthcare REIT recently completed a reverse acquisition with Global Casinos, Inc. to acquire real estate properties primarily engaged in the healthcare industry, including skilled nursing homes, medical offices, hospitals and emergency care facilities. It intends to make a tax election for calendar year 2014 to take advantage of the tax incentives available to real estate investment trusts. As a REIT, the Company will not operate its healthcare facilities but rather will lease its properties under long term operating leases. It currently owns two facilities and plans on acquiring more properties in the future.

For further information, contact:
Christopher Brogdon, President
3050 Peachtree NW, Suite 355,
Atlanta, Georgia 30305
(404) 549-4293

Safe Harbor

This press release may contain projection and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such statement reflects the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur and actual results could differ materially from those presented. A discussion of important factors that could cause actual results to differ from those presented is included in the Company's periodic reports filed with the Securities and Exchange Commission (at www.sec.gov). Contact: Christopher Brogdon (404) 549-4293 or cfbrogdon@winterhaven.com.

Global Healthcare REIT, Inc.
Christopher Brogdon, 404-549-4293
cfbrogdon@winterhaven.com

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Posted In: Press Releases
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